UK interest rates held at 5%

Some in the mortgage industry would have like to see a 0.25% cut but as a company we feel it was the right move. The risks to inflation are to great to warrant a further cut and the effects of the 3 previous interest rate cuts along with the banks recent decision to offer government backed securities in exchange for mortgage backed securities are yet to be seen.

The inflationary fears seem to outweigh the reported decline in house prices and The Chartered Institute of Purchasing & Supply (CIPS) reporting the slowest growth within the services sector since 2003.

Inflation in March has allegedly remained stable at 2.5% but we find that figure skeptical on the basis that this target is set by the Government and takes very little into consideration ie the cost of housing or petrol. The Office for National Statistics says that it looks carefully at what average families pay for goods and services, many of the groups representing the elderly and the low-paid insist that the true rate of inflation is a lot higher than 2.5% or even 3.8%.

Some had thought that rates may have been reduced to stave off an economic recession which is still very possible. The news will be disappointing for homeowners who are already up against the wall and struggling to source new competitive mortgage deals.

It should also be remembered that MPC members have a duty to combat inflation rather than to prop up growth.

Regulation

We are authorised and regulated by the Financial Conduct Authority. To decrease monthly payments, costs in the longer term may actually increase. A fee will be payable for arranging your mortgage. This fee will normally be £1695.00, payable on completion.

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Head Office

Solution Mortgages Limited, Somerford Business Court, Holmes Chapel Road, Congleton, Cheshire. CW12 4SN. Tel: 0845 123 1260. Landline calls to 0845 numbers cost no more than 5 pence per minute. Charges from other service providers may vary and calls made from mobiles usually cost more.

Your Home Is At Risk

Think carefully before securing other debts against your home.

Your home may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.

Adding unsecured debts to your mortgage may both extend the term and the total amount payable.